Movies, songs, and books are covered by copyrights, which allow the creators of these works to keep other people from reproducing them without permission. Many people, though, violate copyright laws by using file-sharing services that allow them to download copies of songs and movies at a zero price.

1. Does file sharing increase the consumer surplus from consuming existing songs and movies? Draw a demand curve to illustrate your answer. The demand curve should indicate the price when file sharing is not possible, the zero price with file sharing, and the amount of consumer surplus with and without file sharing.
2. What are the likely effects of file sharing in the long-run? Is file sharing likely to increase the total consumer surplus from consuming songs and movies in the long-run? Briefly explain.